9. IBM

Undergrad Internships

Internship hiring for 2008 is not complete

Undergrad internships (paid and unpaid)

2008: 2,220 (to date)

2007: 2,811

2006: 2,805

100% of internships are paid, 0% are unpaid.

2007 interns came from the following classes...

2% Freshman

41% Sophomores

57% Juniors

0% Seniors

...and from the following majors:

17% Business

49% Computer Science

2% Economics

22% Engineering

5% Liberal Arts

1% Math

2% Science

1% Undeclared

1%

There is an official summer internship program

Average summer program: 12 weeks

Minimum: 10 weeks

Maximum: 12 weeks

Average hourly wage: $22.00

Average total intern compensation: $16,000*

51% of eligible 2007 interns received full-time job offers

91% of interns with offers accepted

Notes: All IBM interns have access to senior execs, travel, awards, technical/leadership courses, social events, relocation funds, housing assistance & paid holidays/sick days. Interns participate in reverse-mentoring sessions with senior executives.

Applicants & New Hires

Recruited on 100 undergrad campuses in 2007-08.
Made job offers on 100 undergrad campuses.

Applicants for entry-level jobs

2008: 78,000 (to date)

2007: 145,000

2006: 60,000

Entry-level hiring

Entry-level hiring is not complete for 2008.

New hires in:

2008: 1,070* (to date)

2007: 2,150

2006: 1,962

Entry-level hires who were undergrad interns

2008: 18% (to date)

2007: 31%

2006: 24%

Most important characteristics for new hires:

1 Analytical Skills

2 Leadership Skills

3 Teamwork/collaboration

Jobs span hundreds of roles in every industry (e.g., financial services, environment, healthcare) Students work in consulting, strategy, software development, finance, marketing, and engineering, among others.

2007 entry-level hires came from the following majors:

33% Business

38% Computer Science

2% Economics

15% Engineering

6% Liberal Arts

1% Math

1% Science

1% Undeclared

% Other

...and are:

11% African American

8% Hispanic American

25% Asian American

1% Other

45% Total minorities

40% Female

Salary & Benefits

Entry-level hires since Jan. 1, 2008 (to date)

Average base salary:
$65,000 to $69,999

0% earn less than $35,000

5% earn $35,000 to $39,999

5% earn $40,000 to $44,999

6% earn $45,000 to $49,999

8% earn $50,000 to $54,999

10% earn $55,000 to $59,999

30% earn $60,000 to $64,999

11% earn $65,000 to $69,999

13% earn $70,000 to $74,999

12% earn $75,000 and above

Bonuses, Overtime & Perks

26% received signing bonuses

Average signing bonus: $3,800

83% received performance bonuses in their first year on job

Average performance bonus, 2007: $3,500

8% of 2007 entry-level hires eligible for overtime

92% of 2007 entry-level hires not eligible for overtime

Reimburse employees for education expenses? Yes

Do employees become eligible immediately? Yes

Maximum annual education reimbursement: NA*

Full grad school sponsorship for jr. level employees? Yes

Partial grad school sponsorship for jr. level employees? No

Time Off

The organization has a Paid Time Off (PTO) Bank

Maximum PTO days during first year: 15

Maximum PTO days after one year: 15

Maximum PTO days after three years: 15

Maximum PTO days after five years: 15

Maximum PTO days after 10 years:20

Flextime is an option for entry-level employees*

Health Benefits

Do entry-level hires have access to health plan? Yes

Employees pay part of the cost? No

Does health plan provide dental coverage? Yes

Extra charge for dental coverage? No

Does health plan provide vision coverage? Yes

Extra charge for vision coverage? No

Are same sex partners permitted as dependents? Yes

Pension and Profit-sharing

Do entry-level hires have access to 401(k)? Entry-level hires are given access to a 401(K) savings plan*

Max. company match as a percentage of salary: 6%

Min. employee set-aside as a percentage of salary to receive max. co. match: 5%

Are entry-level hires eligible for company funded pension? No

Are entry-level hires eligible for profit-sharing program? Yes

Other Benefits

Does company match employee charitable gifts? Yes

Does company pay relocation expenses? Yes

Max. annual relocation expenses? NA

None

Employee Discounts on the following:

Car rentals

Gym memberships

Cell phone service

Insurance

Cultural events

Publications

Travel,electronics,tax preperation, and $300/year rebate to eat healthy/exercise.

Notes: No maximum dollar amount for educational reimbursement

Stock discount plan, enhanced socially responsible 401(k) funds and financial counseling are available..

Other benefits include time off for adoptive parents, lactation rooms, daycare centers, financial support for children with special needs, before/after school programs, adoption benefits, funds for personal emergencies. 24-hour emergency health hotlines, time off for getting married, extended maternity/paternity leave.

IBM employees work anywhere, including home (40% of IBMers work virtually).

Work Environment

Average entry-level work week: 40 hours

Does average vary by business unit, department? Yes

Entry-level hire work locations...

35% in open work stations

15% in cubicles

5% in shared offices

5% in private offices

40% have no company-supplied work space

Typical dress code

Business Casual

Casual Friday

Casual

Business

Organization sponsors employee volunteer opportunities*

Does organization have fitness facilities on site? Some locations

Notes: IBM On Demand Community volunteers one million hours/year, using millions of dollars in free technology/grants to save the environment, improve literacy, and help local communities.

Training Programs

The organization has a formal orientation program for new hires

Program length: 2 days

Orientation includes the following:

Computer training

Guest speakers

Diversity exercises

Team building activities

Facilities tour

Benefits overview

Personal meetings with top executives; meet other new hires from 170 countries in SecondLife events.

$6,000 average spent on training, per new hire, in 2007

There is a formal leadership or management training program that lasts less than a year:

Program Name: Leading@IBM for Emerging Leaders

How do new employees enter the program? Recommended/Sponsored

If not hired directly into program, when are most new hires first considered eligible? Within First Year

52-week training program

After completion of program, what percentage of employees receive a raise? 75% to 99%

How much is the typical raise: 5-9.9%

There is a formal leadership program for entry-level hires that lasts a year or more.

Program Name: Leadership Development for Finance*

How do new employees enter the program? Apply

If not hired directly into the program, when are most new hires first considered eligible?

Within First Year

Is program rotational? Yes

If so, how many locations or business units does the employee spend time at? 3

Minimum rotations: NA

Maximum rotations: NA

Length of program, in weeks: 156

Minimum: NA weeks

Maximum: NA weeks

After completion, what percentage of employees receive a raise?: 75% to 99%

How much is the typical raise: 5-9.9%

Does company have formal mentorship program? Yes*

100% of entry-level hires participate

20* days of additional training expected

Notes: An HR training program is also available.

Regular career discussions take place throughout year; other mentoring activities include shadowing/reverse-mentoring w/senior execs, speed mentoring, and ?Dear Abby?-style chat session. Also available: 24/7 live access to industry/technical experts through online ?office hours? & Second Life.

IBM spends $600M yearly on learning programs to grow technical/industry/consulting expertise. They include thousands podcasts, blogs, and wikis, plus live online or classroom learning and free journals/books.

Getting Ahead

Three-year retention rate: 90%

Five-year retention rate: 90%

How are raises determined?

Performance

When are most entry-level hires eligible for their first raise?

One-year anniversary

How are promotions determined?

Performance

When are entry-level hires eligible for first promotion?

More than 1 year

Evaluations

Frequency of evaluations

Twice a year

Most important characteristics for entry-level hires:

1 Analytical Skills

3 Customer Satisfaction

2 Leadership Ability

Min. tenure in years required for job change: 1.5

Long-Term Prospects

Does position of vice president exist at this organization? Yes

If not, is there a comparable title?

No. of employees who hold VP or similar title: 3,340

No. of employees with VP or similar title with 20 years plus seniority: 1,637

Age of youngest employee with VP or similar title: 33

Seniority of youngest employee with VP or similar title in years: 10